Infosys comes down hard on quitting employees
IT giant Infosys [Get Quote] is having all its employees sign a non-compete clause which states that even after the employee quits the company, he/ she cannot work for any of Infosys' competitors. In fact, the clause allegedly lists by name the top five rival companies -- Tata Consultancy Services [Get Quote], Accenture, IBM Global Services, Cognizant and Wipro [Get Quote].
It also disallows employees from taking up job offers presented them by the organisation' s customers for upto six months after quitting, if the employee in question has worked on that particular customer's assignments in the previous one year.
Infosys has justified this clause, saying it is a common practice for companies to safeguard their interests and bind their employees to them. Although such a contract's legal standing is disputed, many employees simply prefer to pay up the penalty when breaching it, rather than face a powerful company's legal team in court.
Should this action be taken by the other Companies also? Our company has a high attrition rate. What is the major legal procedure for this?
What are the disadvantages for this?
Please give ur valuable comments.
Regards
Pranita
IT giant Infosys [Get Quote] is having all its employees sign a non-compete clause which states that even after the employee quits the company, he/ she cannot work for any of Infosys' competitors. In fact, the clause allegedly lists by name the top five rival companies -- Tata Consultancy Services [Get Quote], Accenture, IBM Global Services, Cognizant and Wipro [Get Quote].
It also disallows employees from taking up job offers presented them by the organisation' s customers for upto six months after quitting, if the employee in question has worked on that particular customer's assignments in the previous one year.
Infosys has justified this clause, saying it is a common practice for companies to safeguard their interests and bind their employees to them. Although such a contract's legal standing is disputed, many employees simply prefer to pay up the penalty when breaching it, rather than face a powerful company's legal team in court.
Should this action be taken by the other Companies also? Our company has a high attrition rate. What is the major legal procedure for this?
What are the disadvantages for this?
Please give ur valuable comments.
Regards
Pranita